Palmer Square Capital Management - CLO Platform Receives Additional Credit Rating Upgrades

Launched in 2015, Palmer Square's static CLO shelf has registered over $5 billion in issuance and has been rewarded with multiple debt rating upgrades

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Palmer Square Capital Management

Oct 03, 2019, 10:37 ET

MISSION WOODS, Kan., Oct. 3, 2019 /PRNewswire/ -- Palmer Square Capital Management LLC, an asset management firm focused on corporate credit, structured credit and alternative credit strategies on behalf of a wide range of institutional and high net worth investors, recently received ratings upgrades from Standard & Poor's on Palmer Square Loan Funding 2017-1, Ltd., a CLO issued via Palmer Square's Static CLO Platform. This comes on the heels of other recent debt upgrade announcements on other Palmer Square transactions.

Standard & Poor's rating upgrades for Palmer Square Loan Funding 2017-1, Ltd. resulted from a significant debt paydown of the senior notes, overcollateralization improvement, and an increase in credit support. Palmer Square Loan Funding 2017-1, Ltd.'s AA rated debt were upgraded to AAA, single-A debt were upgraded to AA-, and BBB debt were upgraded to BBB+.

Since 2015, Palmer Square has been an active manager in structuring and executing on static pool CLO transactions closing 13 transactions to date. The most significant difference between static CLOs and traditional, reinvestment style CLOs, is that static deals do not have a reinvestment period, are fully identified portfolios at closing, and are immediately amortizing and thus shorter duration.

"We are very pleased with the success that our static CLO platform has had for both CLO debt and equity investors. Debt investors have appreciated the opportunity to invest in short duration, floating rate debt in an area which has historically suffered very few defaults while CLO equity investors have sought high cash on cash returns with greater liquidity and a shorter deal timeframe," said Christopher D. Long, President and CEO of Palmer Square Capital Management.

Angie K. Long, Chief Investment Officer of Palmer Square Capital Management added, "Palmer Square's goal is to continue to seek relative value opportunities across both corporate and structured credit. We believe investing in and managing CLOs such as our recent static CLO transactions continues to be a strong risk-adjusted opportunity for our clients. These ratings upgrades are a testament to our Investment Team's focus on fundamental credit analysis and security selection."

About Palmer Square Capital Management
Founded in 2009 by Chris Long and based right outside of Kansas City, MO, Palmer Square manages approximately $10 billion in credit-related assets. The firm offers mutual funds, separately managed accounts, and other pooled investment vehicles (including investments focused specifically on CLO debt, CLO equity, and warehouse financing).

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SOURCE Palmer Square Capital Management